[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2263 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 2263
To amend the Internal Revenue Code of 1986 to enhance the requirements
for secure geological storage of carbon oxide for purposes of the
carbon oxide sequestration credit, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 25, 2019
Mr. Hoeven (for himself, Mr. Daines, Mrs. Hyde-Smith, Mr. Wicker, and
Mr. Cramer) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to enhance the requirements
for secure geological storage of carbon oxide for purposes of the
carbon oxide sequestration credit, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``CO2 Regulatory Certainty Act''.
SEC. 2. SECURE GEOLOGICAL STORAGE OF CARBON OXIDE.
(a) In General.--Paragraph (2) of section 45Q(f) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(2) Secure geological storage.--
``(A) In general.--The Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, the Secretary of Energy, and the Secretary of
the Interior, shall establish regulations for
determining adequate security measures for the
geological storage of carbon oxide under subsection (a)
such that the carbon oxide does not escape into the
atmosphere. Such term shall include storage at deep
saline formations, oil and gas reservoirs (including
storage associated with qualified enhanced oil or
natural gas recovery projects), and unminable coal
seams under such conditions as the Secretary may
determine under such regulations.
``(B) Requirements.--The regulations established
pursuant to subparagraph (A) shall provide that--
``(i) for purposes of paragraph (1)(B) or
(3)(B) of subsection (a), carbon oxide shall be
considered disposed of in secure geological
storage if such carbon oxide is stored in
compliance with rules promulgated by the
Environmental Protection Agency under subpart
RR of part 98 of title 40, Code of Federal
Regulations (as in effect on the date of the
enactment of this paragraph), under the Clean
Air Act (42 U.S.C. 7401 et seq.) and rules
under the Safe Drinking Water Act (42 U.S.C.
300f et seq.) which are applicable to carbon
oxide disposed of in secure geological storage
and not used as a tertiary injectant in a
qualified enhanced oil or natural gas recovery
project, and
``(ii) for purposes of paragraph (2)(B)(i)
or (4)(B)(i) of subsection (a), carbon oxide
shall be considered disposed of in secure
geological storage at a qualified enhanced oil
or natural gas recovery project if--
``(I) such carbon oxide is injected
in compliance with rules promulgated by
the Environmental Protection Agency
which are applicable to carbon oxide
used as a tertiary injectant in a
qualified enhanced oil or natural gas
recovery project under subpart C of
part 146 of title 40, Code of Federal
Regulations (as in effect on the date
of the enactment of this paragraph),
under the Safe Drinking Water Act, to
the extent such rules are applicable to
Class II wells,
``(II) the injection of such carbon
oxide at such project is reported in
compliance with subpart UU of part 98
of title 40, Code of Federal
Regulations (as in effect on the date
of the enactment of this paragraph),
under the Clean Air Act,
``(III) the supply of such carbon
oxide to such project is reported in
compliance with subpart PP of part 98
of title 40, Code of Federal
Regulations (as in effect on the date
of the enactment of this paragraph),
under the Clean Air Act,
``(IV) the atmospheric emission of
such carbon oxide from such project is
reported in compliance with subparts C
and W of part 98 of title 40, Code of
Federal Regulations (as in effect on
the date of the enactment of this
paragraph), under the Clean Air Act, to
the extent such subparts are applicable
to such project, and
``(V) the demonstration and
documentation of the containment,
monitoring and quantification of such
carbon oxide conforms to ISO 27916:2019
(entitled `Carbon dioxide capture,
transportation and geological storage -
Carbon dioxide storage using enhanced
oil recovery (CO2-EOR)') or the
equivalent standard of the American
National Standards Institute.''.
(b) Qualified Enhanced Oil or Natural Gas Recovery Project.--
Paragraph (2) of section 45Q(e) of the Internal Revenue Code of 1986 is
amended--
(1) by striking ``by substituting'' and inserting
``determined--
``(A) by substituting--'',
(2) by striking the period and inserting ``, and'', and
(3) by inserting at the end the following:
``(B) without regard to subparagraph (A)(iii)
thereof.''.
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